Farm Online has the following report on the impact of rising oil prices on Australian farm businesses:
Farm incomes have been tipped to fall by a third in 2005-06, despite the optimism generated from the winter crop comeback and good prices for many rural commodities.
As the Westpac-National Farmers’ Federation Rural Commodity Index rose 2.9pc in September on the back of improved sugar and grain prices and record high cattle prices, the Australian Bureau of Agricultural and Resource Economics (ABARE) September Commodities report forecast the fall of net farm income in 2005-06 compared to 2004-05, driven by big fuel price increases.
“It is unfortunate that just as we look like we might be emerging from one of the worst droughts in living memory the farming sector is being slugged by record high oil prices which are feeding into fuel, fertiliser and chemical costs,” NFF Farm Business and Economics Committee chair, Charles Burke, said.
“Compared with the $13B farmers earned in 2001-02, net earnings of $4.4B this year looks fairly grim.
“With fuel costs up 34pc over this time and 20pc up on last year, it is not hard to see oil prices are having a big impact.
Jennifer Marohasy BSc PhD is a critical thinker with expertise in the scientific method.
Maybe this is the time to start to consider a renewable home grown source of fuel, bio-diesel made from canola oil.
Biodiesel is completely non-toxic (you can drink it; but you might feel sick)and biodegradeable. Biodiesel can be stored and transported safely without the precautions that must be taken with petroleum fuels. A spill of biodiesel will cause absolutely no injury to soil, fish, plants or animals. One of the best things about biodiesel is that it’s available here and now and the technology is proven. The modern diesel engine is efficient, reliable, economical, and is powering an increasing number of european manufactured cars as well as tractors on the farms.The combination of diesel engine and biofuel beats the hybrid electric /petrolueum engine for environmental friendliness and economy.
Would also provide some incentive in adding value to our canola crop by crushing it and extracting the valuable oil here in Australia. Presently 67% of harvested grain is exported to China and Japan as whole seed. In China the seed is crushed , oil extracted and the meal sold on to third countries as animal feed.